XH NEWS MEDIA (00309.HK): Places up to 5,830,348 New Shares at HKD 0.8 per Share under General Mandate, Net Proceeds of about HKD 4.564 Million for Working Capital
NewTimeSpace News: On 2 September 2026, Xinhua News Media Holdings Limited (stock code: 00309.HK) announced that it had entered into a placing agreement on the same day with KGI Asia Limited, as placing agent, which agreed to place, on a best effort basis, up to 5,830,348 new shares at a placing price of HKD 0.8 per placing share to not fewer than six independent placees.
The maximum number of placing shares represents approximately 11.19% of the company's total issued share capital of 52,101,744 shares as of the date of this announcement, and approximately 10.06% of the total issued share capital as enlarged by the placing. The placing price represents a discount of approximately 13.98% to the closing price of HKD 0.93 per share as quoted on the Stock Exchange on 2 September 2026, the date of the placing agreement, and a discount of approximately 13.98% to the average closing price of approximately HKD 0.93 per share over the last five trading days immediately preceding that date. Assuming the placing shares are fully placed and after deducting all related expenses, the net proceeds from the placing are estimated at approximately HKD 4.564 million, which will be used as general working capital of the group.
The placing shares will be issued under the general mandate granted by shareholders at the annual general meeting held on 30 September 2025, which authorizes the issue of up to 9,655,348 shares, of which 3,825,000 shares had been issued prior to the date of this announcement. The placing is conditional upon the Listing Committee of the Stock Exchange granting approval for the listing of and dealing in the placing shares; if such condition is not satisfied on or before 23 September 2026, the placing agreement will lapse. The placing does not require shareholders' approval and is expected to complete on the third business day after all conditions are satisfied.
Immediately following completion of the placing (assuming all placing shares are fully subscribed), the shareholdings of Mr. Chen Xiangren, Mr. Yu Weikun and Ms. Yu Huilin will be diluted from 10.09%, 9.27% and 7.64% to 9.08%, 8.33% and 6.87% respectively, and the placees will hold an aggregate of approximately 10.06%. The group is principally engaged in the provision of cleaning and related services, waste management services and advertising media business, and has been exploring business and investment opportunities in property investment, the technology, media and telecom (TMT) sector and water treatment business. Within the twelve months immediately preceding the date of this announcement, the company issued new shares under the general mandate on 7 May 2026 and 27 May 2026, with net proceeds of approximately HKD 5.0 million applied to repay debts.
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